AOL Announces $5.15/Share Special Cash Dividend Will be Treated as Return of Capital for Tax Purposes

AOL (NYSE: AOL) announced today that its previously announced one-time, special
cash dividend of $5.15 per share will be treated as a return of capital
for tax purposes. The one-time, special cash dividend is payable on
December 14, 2012 to shareholders of record at the close of business on
December 5, 2012.

AOL announced its intent to pay the one-time, special cash dividend on
August 27, 2012 as part of the process that will return approximately
$1.1 billion to AOL shareholders in 2012.

Shareholders are encouraged to consult their tax advisor to determine
the specific effect this distribution may have on their individual tax
position. The information above relates solely to the distribution of